Retirement Calculator · Practical guide
How Much Do I Need to Retire at 60?
Retiring at 60 means funding roughly 30-plus years. The 25x rule gives you a concrete savings target to aim for.
At a glance
The Rule of Thumb
A widely used target is 25 times the annual expenses you want your savings to cover, which corresponds to a 4% first-year withdrawal rate. If you plan to spend $48,000 per year from your portfolio, you need about $1.2 million at age 60. Social Security and pensions reduce what the portfolio alone must provide, so subtract those before sizing your target.
Interactive tool
Retirement Calculator
Enter your own values, then compare the result with the examples below.
Retirement Projection
A Worked Example: Starting at 40
Suppose you are 40, plan to retire at 60, already have $100,000 saved, contribute $1,000 per month, and earn a 7% average annual return. Your existing savings grow to $100,000 × 1.07^20 ≈ $386,968, and your contributions accumulate to about $520,927 — a projected nest egg of roughly $907,895. Under the 4% rule that supports about $36,316 per year, or $3,026 per month, before Social Security.
Target Nest Egg by Income Goal
| Annual Income Needed | Monthly Income | Nest Egg Needed (25x) |
|---|---|---|
| $30,000 | $2,500 | $750,000 |
| $40,000 | $3,333 | $1,000,000 |
| $50,000 | $4,167 | $1,250,000 |
| $60,000 | $5,000 | $1,500,000 |
| $80,000 | $6,667 | $2,000,000 |
If You Are Behind
Reaching $1 million by 60 from a standing start at age 40 takes about $1,920 per month at a 7% return; starting at 45 pushes that above $2,500 per month. The levers are always the same: contribute more, delay retirement a few years, trim planned expenses, or some mix of all three. Enter your own numbers in the calculator above to see your projected savings, the income it can produce, and any shortfall against your target.
Frequently Asked Questions
Is $1 million enough to retire at 60?
Under the 4% rule, $1 million supports about $40,000 per year ($3,333 per month) from savings. Whether that is enough depends on your expenses and other income like Social Security, which you can claim as early as 62 at a reduced benefit.
How do I handle health insurance before Medicare at 65?
Retiring at 60 means five years before Medicare eligibility, so you will need ACA marketplace coverage, COBRA, or a spouse's plan. Build those premiums into the monthly expense figure you enter in the calculator.
What return should I assume for my projections?
A balanced portfolio has historically returned 6-7% per year before inflation over long periods. Many advisors suggest using a lower assumption as you near retirement and shift toward conservative investments.
Does retiring at 60 instead of 67 make a big difference?
Yes, for two reasons: your savings compound for seven fewer years, and the money must last roughly seven years longer. The same $1,000 per month from age 40 grows to about $908,000 by 60 but over $1.5 million by 67 at a 7% return.